Go green on your car insurance

First it was banks that felt they had to go green to keep their customers happy. Now car insurers are joining in. We all know that driving our cars is bad for the environment and more and more of us are walking or cycling where possible. However, sometimes it’s unavoidable that we have to depend on our car to get us from A to B. Not all of us are able to change our cars at the moment to the greener hybrids and low-emission vehicles, but with eco-insurance we can now drive with a slightly clearer conscience. Granted it can’t prevent the emissions into the atmosphere, but it can offset the damage by investing in reforestation and other educational programmes at home and abroad.

ibuyeco searches for competitive quotes from 30 big name insurers including Norwich Union, Legal and General and Churchill. It prides itself not only on saving the customer money but, in addition, offsetting 100% of a car’s CO2 emissions. This is done by adding a small offset fee to the premium. The fee is calculated in accordance with DEFRA guidelines which take into account factors such as engine size, the type of fuel consumed and the annual mileage. The offsetting is done in conjunction with The Carbon Neutral Company (TCNC), one of the world’s leaders in the field of carbon offsetting and climate consultancy.

ibuyeco is not alone in offering carbon offsetting, although many of its competitors offset as little as 20% of the emissions. Co-operative Insurance was the first to launch eco-insurance in 2006 and, according to a spokesperson, they have had a very positive response from customers of all age groups up and down the country. It seems that once we realise that this environmentally friendly insurance is not going to hit us hard in the pocket, we are all keen to do our bit for the planet. Not only does the Co-operative Insurance company offset in part the carbon emissions of the vehicles insured, but they also require their approved mechanics to be environmentally aware, for instance in matters such as waste management. They even offer discounted premiums for drivers of hybrid petrol and electric cars, as well as high fuel efficiency vehicles. Customers are also surveyed regularly on the ethical stance which they wish the Co-op to take, offering a real say in the company’s investment policy.

In August of last year, a new car insurance company, The Green Insurance Company, was launched, to make it easier for drivers to go green. It not only offsets 100% of the CO2 emissions at no increased charge to the motorist, but also undertakes to invest five percent of its annual profits in environmentally sustainable projects. It has also purchased a fleet of hybrid Toyota Prius cars for use by its staff.

These are just some of the insurers offering a green alternative to the damage done by our driving habits. It seems that we now have very few excuses not to do our bit and, best of all, it need not cost an arm and a leg.